EXHIBIT 99.3
HISPANIC BROADCASTING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated statement of operations
presents the Company's results of operations for the year ended December 31,
1998 as if the acquisition of WCAA(FM) (formerly WNWK(FM), the "Acquisition")
had been completed on January 1, 1998. The pro forma condensed consolidated
statement of operations gives effect to the Acquisition during the period
presented using the purchase method of accounting and reflects the consolidated
historical financial data of the Company and the Acquisition, as more fully
described in the notes hereto.
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HISPANIC BROADCASTING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
Company
pro forma
Company Pro forma condensed
as reported (1) Acquisition (2) adjustments consolidated
--------------------- --------------------- --------------------- -------------------
Net revenues $ 164,121,608 $ 1,616,421 $ (336,180) (3) $ 165,401,849
------------- --------------- ---------------- ----------------
Operating expenses:
Operating expenses 95,783,645 947,006 (241,467) (3) 96,489,184
Corporate expenses 5,451,010 - - 5,451,010
Depreciation and amortization 21,149,369 165,288 952,489 (4) 22,267,146
--------------- --------------- ---------------- ----------------
Total operating expenses 122,384,024 1,112,294 711,022 124,207,340
--------------- --------------- ---------------- ----------------
Operating income (loss) 41,737,584 504,127 (1,047,202) 41,194,509
--------------- --------------- ---------------- ----------------
Other expense (income):
Interest expense (income), net (2,634,467) 205,882 2,739,781 (5) 311,196
Other expense (income), net (251,780) (2,820) - (254,600)
---------------- --------------- ---------------- ----------------
Total other expense (income) (2,886,247) 203,062 2,739,781 56,596
--------------- --------------- ---------------- ----------------
Income (loss) before income tax 44,623,831 301,065 (3,786,983) 41,137,913
Income tax (benefit) 17,739,980 48,000 (612,964) (6) 17,175,016
--------------- --------------- ---------------- ----------------
Income (loss) from continuing operations $ 26,883,851 $ 253,065 $ (3,174,019) $ 23,962,897
--------------- --------------- ---------------- ----------------
--------------- --------------- ---------------- ----------------
Income from continuing operations
per common share:
Basic $ 0.55 $ 0.49
Diluted $ 0.54 $ 0.48
Weighted average common shares outstanding:
Basic 49,020,759 49,322,634
Diluted 49,347,646 49,649,522
Other operating data:
Broadcast cash flow $ 68,337,963 $ 68,912,665
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HISPANIC BROADCASTING CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL INFORMATION
(1) Represents the historical operating results of the Company for the year
ended December 31, 1998.
(2) Represents the historical operating results of WCAA(FM) for the period
January 1, 1998 through May 21, 1998.
(3) Represents the historical operating results of WPAT(AM) for the period
January 1, 1998 through May 21, 1998.
(4) Represents incremental depreciation and amortization expense resulting
from the Acquisition from the beginning of the accounting period
through the date of purchase net of the WPAT(AM) depreciation and
amortization for the same period as follows:
Depreciation $ 13,151
Amortization 1,327,049
Less historical (165,288)
-------------
1,174,912
Less WPAT(AM) historical (222,423)
-------------
$ 952,489
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-------------
The estimated weighted average useful lives of property and equipment,
FCC licenses, and going concern value is assumed to be five, forty and
forty years, respectively.
(5) Represents the assumed reduction in interest income for the year ended
December 31, 1998 associated with the Acquisition as if the radio
station was acquired on January 1, 1998. The purchase of WCAA(FM) was
funded from proceeds obtained from the secondary public offering that
occurred on January 22, 1998. The assumed reduction in interest income
associated with the acquisition of WCAA(FM) is computed using a
weighted average interest rate of 6%. This rate is based on historical
yields of short-term investments.
(6) Reflects the income tax benefit related to the pro forma adjustments.
The adjustment to income taxes reflects the application of the
estimated effective tax rate to income before income tax for historical
and pro forma adjustment amounts.
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